Russia Reduces Key Interest Rate to 7.5% Impacting Controlled Debt Rules and Interest Penalties
The Russian Central Bank announced its decision to reduce the key rate from 8.0% to 7.5% on 16 September 2022. For tax purposes, the key rate is important in relation to the safe harbor rates for interest income and expense on controlled debt. For ruble-denominated loans, the standard safe harbor rates range from 75% to 125% of the key rate. However, the upper range has been temporarily increa…
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